From toxic waste to iGaming

 

It is a well known fact that the underworld on the Italian peninsula controls vast stretches of the Italian economy.

Some readers would remember the underworld’s waste-management activity that ended in the sinking of some 42 ships laden with toxic and/or hazardous waste throughout the Mediterranean. This was well known to environmentalists but confirmed during the Palermo maxi-processo, when Mafia turncoat Francesco Fonti gave evidence identifying the location of one such sunken ship, the Kunsky, loaded with 120 barrels of toxic waste, just off the Calabrian coast.

This network of organised environmental crime is so vast that, at one time, it also dumped toxic, hazardous and nuclear waste in Somalia. The warlords in the Somalia civil war were partly financed by the Italian underworld, which supplied them with arms in return for their consent to the dumping of the toxic, hazardous and nuclear waste in Somalia. Rai Tre’s investigative journalist Ilaria Alpi and her cameraman Miran Hrovatin were murdered in Mogadishu after having successfully tracked down the toxic shipments.

In early 2008 it was identified that buffalo mozzarella originating from some 83 dairy farms in an area near Naples was tainted with dioxin. The buffalo were grazing in an area where the Mafia was controlling the dumping of toxic waste  containing dioxin. When ingested through food dioxin can cause birth defects and organ failure in mammals. Large quantities of buffalo mozzarella tainted with dioxin were withdrawn from the market.

Carmine Schiavone, another Mafia turncoat, spilled the beans on more dumping of toxic and hazardous waste by the Mafia in the Naples area, in particular in the area around Casale di Principe. It has been reported that the incidence of cancer in these areas has skyrocketed as a result of the dumping contaminating the water table.

It is estimated that the underworld has garnered some €20 billion a year in the last few years from its illicit dealings in waste. Add to this the billions from its drug dealings, estimated at another €20 billion annually and you can clearly understand the Mafia’s need to launder huge sums of money.

Two specific areas seem to have been selected for this purpose. One such area was an investment in wind-farms in Sicily. Wheeling and dealing in the Sicilian wind farms was a certain Gaetano Buglisi who, for a time, made use of Malta’s fiduciary services by hiding behind their corporate veil. Last February the Italian Courts sentenced him to three years in jail as well as a substantial fine on finding him guilty of tax evasion.

It is within this context that one should try to understand the iGaming saga in Malta.

In the last few days the Malta Gaming Authority (MGA) has suspended the operating licences of a number of iGaming operators. Until the time of writing, six operators have been suspended, namely : Uniq Group Limited (Betuniq), Betsolution4U Limited, Alibaba Casino Limited, Soft Casino Limited,   Fenplay Limited and Soft Bet Limited . The MGA did not act on its own initiative but at the request of Italian law enforcement agencies.

In a press release, the MGA stated these licences had been suspended “further to investigations and arrests carried out by the Italian law enforcement authorities in collaboration with the Maltese police. The MGA is providing full support to the relevant authorities so that Malta’s reputation as a gaming jurisdiction of excellence is kept free from crime and money laundering. The MGA is also alerting counterpart regulators in other EU jurisdictions about this case.”

In a further press release issued on 25 July it was stated  “At the time of application (according to the MGA’s records), in line with standard procedures, all directors, shareholders, senior managers and ultimate beneficiary owners of these companies have been screened through MGA’s systems and protocols, using probity tools and national and international contacts and organisations. This forms part of the probity checks conducted at pre-licensing stage and before the actual business model of the gaming operation in question is screened and other control systems are checked and approved. The licensing process also includes independent audits, such as system and compliance audits which are carried out by approved external auditors.”

It seems that the due diligence carried out in Malta is no match for the underworld. It is possibly a case of amateurs trying to keep professionals in check.

On Thursday, Finance Minister Edward Scicluna stated that a review of due diligence procedures will be undertaken and changes will be put in place if  required. As a start, he should consider embedding complete transparency in iGaming. Hiding the identity of iGaming operators should be discontinued by emending legislation and discontinuing fiduciary services. This corporate veil is unfortunately being used as a tool by the underworld. As a nation we could do better if we make an effort to keep organised crime as far away from Malta’s economic activities as possible. It is pertinent to ask: how many iGaming jobs in Malta depend on Mafia linked operators.

published in The Malta Independent on Sunday, 2 August 2015

On this blog on the same subject one can view the following :

2009 The eco-threat of the Italian Mafia.

2013 On Malta’s Northern doorstep: the Mafia contaminates Southern Italy with millions of tonnes of toxic and nuclear waste.

2013 Ecocide in the Mediterranean. The known consequences so far.

2013 Schiavone’s secrets on eco-mafia operations: when will Malta’s government speak up.

Schiavone’s secrets on Eco-Mafia operations: when will Malta’s government speak up?

I have dealt with eco-Mafia in previous blogposts. It handles toxic and nuclear waste, pockets the substantial fees for handling such waste and then dumps the waste wherever the Mafia feels it is necessary. It has pocketed billions in the process.

They have done it when they sunk 42 ships in the Mediterranean Sea carrying loads of toxic and nuclear waste. This they did in the 1980s and 90s.

They did it when they dumped toxic waste in disused quarries which ended up as the grazing grounds for herds of buffalos in the agricultural areas around  Napoli. As a result buffalo mozzarella ended up being withdrawn from the market in March 2008.

Last week Carmine Schiavone’s secret testimony given 16 years ago to one of the Italian Parliament’s Committees was published. In this testimony he reveals more cases of dumping of toxic and nuclear waste in various areas around Napoli.

In addition to the impacts on the communities residing in the Napoli area, all this could have serious implications beyond Napoli.

I can think of 4 basic impacts on Malta of the activities of eco-Mafia throughout the years, namely :

1. 60% of Malta’s water is purified sea water; hence what goes into the sea is of primary importance for us;
2. fish is an important part of our diet; fish do not respect boundaries; marine pollution is known to be absorbed by fish and passed on through the foodchain;
3. health and safety of fishermen in polluted waters is of considerable concern;
4. the polluted ground water, and polluted fields in the Naples area are also of concern due to their impact on the  foodchain. In Malta we import various food products from Italy.

It would be interesting to be informed as to why the Maltese Government has been silent on the matter for so long.

Ecocide in the Mediterranean. The known consequences so far.

Carmine Schiavone’s secrets are now public knowledge. They  join the testimony of Francesco Fonti at the Mafia’s maxi-processo in Palermo. The mozzarella scandal of 2008 pales into insignificance.

Organised crime has a solid grip on toxic and nuclear waste disposal in the Italian peninsula. They dumped it in  areas where buffalos grazed. They dumped in areas around Naples, in particular around Casale di Principe or in the Mediterranean Sea. Francesco Fonti had mentioned 42 ships laden with toxic and nuclear waste which were sunk in different areas of the Mediterranean. The location of one them, the Cunsky (vide illustration above) had been identified just off the coast of Calabria loaded with 120 barrels of toxic waste.

The latest revelations involve the dumping of nuclear and toxic waste originating from Germany and Northern Italy  in areas where they contaminated ground water.

Legambiente, the Italian environment NGO is not surprised with the information revealed in Schiavone’s testimony. Over the years it has documented countless cases which it classifies under the title Ecomafia: it has published annual reports on the matter since the year 2000.

I will not bother you with more details. Just one tiny bit: one particular health centre in the Naples area has identified that the number of cancer cases it deals with has skyrocketed from 136 in 2008 to 420 in 2012.

The New York Times on Sunday reported : Mafia’s dumping of toxic waste blamed for high cancer rates in Italy.  “Cancer rates have increased 47% for men and 40% for women in the areas around Naples and Pompeii thanks to illegal disposal by Mafia-controlled companies that occurred during a 20-year period, in which the harmful substances were dumped into lakes, farmland, quarries and caves.”

In Malta the above has not triggered any particular interest yet.

The eco-threat of the Italian Mafia

 

by Carmel Cacopardo

published September 19, 2009

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The revelation by Francesco Fonti that the Calabria Mafia sank a number of ships in the Mediterranean carrying a cargo of nuclear and toxic waste confirmed what the international environmental non-governmental organisation Greenpeace has been stating for a number of years.

The cargo on board these ships (which could number as many as 42) is of direct concern to Malta. The environmental crime of dumping this toxic and nuclear waste could have already affected (without our knowing) Malta’s water supply as well as the fish we eat and the seawater we swim in.

Whether and to what extent the food chain was contaminated is difficult to ascertain at this stage unless the relevant authorities are in a position to explain whether over the years fish and water (including sea-water) were sampled and tested for chemical contamination. Hopefully, such monitoring, sampling and testing was carried out. At this stage no information is forthcoming as to the type of toxic wastes dumped nor whether the waste dumped is still contained or else whether it has dispersed. The exact location of the dumping and the sea currents prevalent in the area would also be of extreme relevance.

Toxic contamination does not necessarily kill immediately. It may block or distort a number of our natural activities.

In the foreword to the book Our Stolen Future by Theo Colborn, Diane Dumanoski and John Peterson Myers, former US Vice President Al Gore speaks of  “a large and growing body of scientific evidence linking synthetic chemicals to aberrant sexual development and behavioural and reproductive problems. Although much of the evidence these scientific studies review is for animal populations and ecological effects, there are important implications for human health as well”.

Reference to three examples would serve to illustrate the nature of the threats.

President Jimmy Carter on August 7, 1978 had declared a state of emergency at Love Canal. A landfill containing over 21,000 tons of chemical waste dumped in the 1940s and the beginning of the 1950s caused the contamination of residential and educational environments and resulted in miscarriages, birth defects, respiratory ailments and cancer. Fifty-six per cent of children born in the Love Canal environs between 1974 and 1978 had a birth defect. This led the US to enact the Comprehensive Environmental Response Compensation and Liability Act known as the Superfund in the last days of the Carter Presidency.

In early 2008 in Italy it was found that buffalo mozzarella originating from some 83 dairy farms in an area near Naples was tainted with dioxin. The buffalo were grazing in an area of illegal dumps of toxic waste controlled by the Mafia. Dioxin can cause birth defects and organ failure.

On May 31, 1989 a beluga whale was found floating belly up near Pointe-aux-Cenelles close to Quebec, Canada. An autopsy carried out on the whale revealed that it had both a male and a female set of genital organs. It was a hermaphrodite. This was eventually traced to pollution-induced hormone disruption which derailed the beluga whale’s normal course of sexual development. “One cannot rule out,” noted the autopsy report “that pollutants present in the mother’s diet had interfered with hormonal processes (guiding the) normal evolution of the sexual organs of her foetus”. The beluga whale is a mammal like the human being.

The above examples point to the possible consequences of the Mafia eco-threat.

Sixty per cent of our water originates from the sea. Fish roam about the Mediterranean Sea including contaminated areas. Pollution will not respect borders.

All of us would be more at ease if we are informed of the measures being taken by the public authorities to shield us from these threats.

original article at   The Times